March 20th, 2009 by Jane Havana

Financial troubles can come up fast, and can be very stressful. The biggest problem is that we usually don’t know who to turn to when we get into debt. This article is to provide you with the necessary information regarding the options you have when you are facing problems such as debt. Fortunately, there are several organisations nation-wide that provide help to people who have financial concerns.

The Consumer Credit Counselling Service: This is a registered charitable trust that offers free guidance to people who are facing monetary challenges. Their guidance is autonomous, fair, as well as practical. You can call 0800 138 1111 to have a discussion with a counsellor who will carry out an evaluation of your monetary state, and will either offer you with emergency help, self-help materials, or call you in for an interview. The interview will either be phone based or in person and they will send you introductory information in advance.

They will completely review your debt and income and give a recommendation of what you should do. They will prioritise your basic living expenditure, priority debts, and after this review whether you have money left over to pay to the other creditors. If you do, they will call these and set-up interest freezes as well as talk creditors into accepting a longer repayment timeline.

There is also a national telephone helpline, called National Debtline, which can be used by people in England, Wales, and Scotland. The service is free, as well as independent. They will guarantee you confidentiality as well. After your phone call, they will follow up with free materials that can help you. They can also help you set up a management plan for your debt.

The third organisation is Payplan, which is one of the UK’s finest debt management companies. They support people who have problems managing debt, and will also work in alliance with the National Debtline. They offer a free debt management service, and want to aid people in setting up and following through on a repayment plan. They are funded by the credit industry, who wants all people to have access to on the house recommendations on how to manage debts.

They will do a full assessment of your finances, and then approach your creditors and find ways to work out new repayment plans. You will then pay Payplan monthly, and they will re-direct these payments to your creditors. All the money you pay them is used to pay off your debt and they will assign a case officer to you who will help you in case you are having problems with anything. You can call them at 0800 085 4298.

The Citizens Advice is a free information and advice service that helps people with legal and financial problems. Most of their advisors are trained as volunteers and solve over 5.6 million cases a year.

Before meeting them, gather all your documentations including any court papers and information about your earnings and expenses. You can get a number for The Citizens Advice through your telephone directory.

bankruptcy, Debt, Finance, Finance and Money Management, Individual Voluntary Arrangement, iva, money

March 10th, 2009 by Josh Ramos

People who are considering bankruptcy often hesitate for a number of reasons. They may be worried about the long-term consequences like not being able to obtain credit or buy a house in the near future. However, for some people the shame that supposedly comes with bankruptcy is one of the main concerns.

Now if your finances are truly in trouble, then personal shame may not be the most important issue. After all, bankruptcy is a legal and legitimate way to receive debt relief. However, it is true that bankruptcy becomes a matter of public record, and the information is available to any person who takes the trouble of looking into it.

First of all, it is important to understand what bankruptcy is. Bankruptcy is a legitimate option for those who have found themselves overwhelmed by consumer debt and are unable to pay. If you can’t see yourself paying off your debts within the next few years (as long as you are willing to make some reasonable sacrifices in your budget), then you should definitely consider bankruptcy.

If, on the other hand, you could pay off your debt in a few years by making some sacrifices and adjusting your monthly budget, then you may not need to go as far as declaring bankruptcy.

As for the other consequences of bankruptcy, such as a poor credit score, they probably should not factor greatly in your decision-making. Your credit score is not the most important issue if you are surrounded by credit card debt and need a way out. Your credit can be rebuilt even though it may take some time.

If you take advantage of your second chance, you can slowly rebuild your credit and you’ll probably one day be able to buy a house along with the other things that you desire. The point is that you shouldn’t feel ashamed about considering bankruptcy.

Once again, it’s okay to be saddened about your financial situation, and you should ask yourself what changes you need to make in your life to help prevent this from happening again. However, you don’t need to be embarrassed for the rest of your life, even though some friends or relatives may be critical of your decision.

You shouldn’t be embarrassed to look into this since it can have a lot of benefits for your financial future. It’s true that bankruptcy becomes a matter of public record, so it’s possible for people to look into your financial past. This may be more of a problem in a small community where everyone knows each other, but it really shouldn’t matter in a larger city.

bankruptcy, credit, Finance and Money Management, financial, Personal Bankruptcy